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Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

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01:01:00

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Channel v58

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mpeg2video

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ac3

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480

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Ibm 19, Us 13, Boston 12, Michelle 11, Europe 8, Washington 7, Cyprus 6, America 4, Texas 4, David Garrity 4, Imf 3, Basel 3, Motorola 3, Google 3, Lucas 3, Jon Fortt 3, S&p 3, Microsoft 3, United States 3, Cnbc 3,
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  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of the  
   day's winners and losers in the stock market. New.  

    April 18, 2013
    4:00 - 5:01pm EDT  

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portfolio. >> and you do sound calm. thanks, ben, see you later. that is the first hour of the "closing bell." stand by. some very important earnings that could set the tone for tomorrow, coming up next, right now on ohour number two of the "closing bell." welcome to the "closing bell." i'm michelle caruso-cabrera in for maria bartiromo. she's back tomorrow. >> and i'm bill griffeth. stocks coming off their lows of the day. here's how we're finishing this day on wall street. this will be the first day this week, it looks like, that we haven't had a triple-digit move for the dow. but we are finishing lower today, off the lows, down 79 points. the nasdaq, once again, hardest hit, down 1.2%. a dayt apple fell below $400, now at 31.66 on the nasdaq composite, and the s&p down ten-plus points at 1541, and we are just moments away from earnings from the big three,
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ibm, microsoft, and google. we have them all covered for you. david garrity from gba research. >> wow. >> yeah, we're back on "power lunch" days. >> is that an octabox. >> jon fortt, josh lipton. first, heather hughes and rob malcolm, along with greg ip "the economist." everybody's in the water, so we can just jump in. heather, what do you make from the markets this week? what's the message from this very volatile market in your view? >> well, the markets have picked up volatility. before last week, the vix volatility measure was at all-time lows, since 2007. that, of course, has increased, but it will be interesting when we get these earnings numbers coming out now. of course, corporate profits, that's key. it seems like it's coming from revenue minus costs, we're cutting cost sides of the equation, not necessarily revenue and topline growth. it so will be interesting to see what those numbers are as we get
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them. >> greg, you covered the fed so much. all this week, there's been a debate. just last week, we debated about whether or not we were going to be talking about deflation. is anybody at the federal reserve worried about deflation? >>well, some people like tim bullard just the other day was talking about the very low rate of inflation. 1.3%, if you use the index the fed watches. that might be an excuse to keep up the pace of quantitative easing for longer than you might have expected. i think, bill, for the fed, the thing that's a little bit more worrisome has got to be the latest data points that suggests the weakness that began in march seems to be bleeding into april. the weaker than expected philadelphia fed index that we saw today, for example. >> but shouldn't the market rally, then? because that would mean even more quantitative easing. >> i think that the market, by now, realizes that the fed can do qe again and again and again. and it does not make up for the lack of vigor in the economy and the lack of topline growth you're seeing from big companies reporting, like heather was referring to. >> rob, that was my point,
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really, is this change in market psychology. during the first quarter, that seemed to be how the market rationalized moving higher. even with a bad economic report, the fed is going to still be pumping out the $85 billion a month, so we shouldn't worry. but now we seem to be worried this week. what's going on? >> yeah, bill. i'm getting worried. i think the market psychology has changed a bit, so now we actually need good news to propel stocks higher, and i've been overweight stocks for 18 months now, but i've gotten a little more defensive here. i upgraded consumer staples, downgraded materials. haven't gone to an underweight on stocks yet, but i'm watching closely. as greg just mentioned, if the economic indicators are for the third summer in a row, turning down, this might be another sell in may, go away type summer. i don't think we're quite there yet, though. >> what are the most important numbers that we're looking at here, after the bell, david garrity, out of the three big ones? >> i think the most important we're looking at is actually ibm. historically, how ibm does tends to correlate well with how the
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s&p 500 performs, respectively. >> david, they just come out, they beat by four cents on the bottom line. the expectation was 68 cents for microsoft and they turned 72 cents. revenues, they expected $20.5 billion. they got $20.49 billion. let me ask jon fortt if you've got anymore on that, before we get back to david garrity on this. >> i do, bill. taking a look at the divisions and how they performed the for microsoft, windows, windows live came in at $5.7 billion. that's a little light with a $5.97 that a lot on the street expected. server and tools also slightly light at $5.04 billion. the business division, a little bit light at $6.3 billion versus $6.5 expected. entertainment and devices did better than expected, $2.53 billion versus about a $2.18 consensus, and the online division also a little better than expected at $832 million versus less than $800 expected.
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so those business, those enterprise dependent groups and tools, the business division, underperforming a little bit, as we've seen several other companies do in this earnings season so far, guys. >> david garrity, what do you think of that? the business division, the biggest provider of revenue for microsoft. >> and it's not just one quarter for microsoft, it's actually talking about what point in time you're going to see greater uptake around windows 8. and more and more indication that -- >> but should we so that now? >> arguably, the product has been out on the market for a long enough period of time that there should be benefit being realized by microsoft in the march quarter, and obviously in terms of any outlook they provide for the june quarter. but the bigger issue for microsoft is when it comes down to looking at tablets and smartphones, they have other operating systems out there that they're a minor player, relative to, obviously, you have to look at google's android and you have to look at apple's ios -- >> a bit of good news here, also. >> go ahead, john. >> a bit of good news on the
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outlook. typically, microsoft just gives operating expense guidance. they are guiding that downward. they're now giving a range of $30.2 billion to $30.5 billion for the fiscal year. they're also offering preliminary 2014 operating expense guidance of $31.6 to $32.2. that's just 4% to 6% growth from the midpoint of 2013. so, as we saw, intel also managing expenses downward. it looks like microsoft is doing the same thing here, guys. >> let's bring roger kay in. what do you think of -- the market's kind of going sideways on microsoft here in the after-hours. >> we're definitely hitting that theme of slow revenue growth and managing of operating expenses in order to squeeze out more bottom line. and i think that we're probably going to see some more o of that and probably even see some of that with ibm. so essentially, where there's not a lot of o secular growth, the companies have to turn to
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expense management as what i to keep bringing in the money. it's not very encouraging, but i should point out one other thing. >> very quickly. >> every license that microsoft sells, it's either windows 8 or windows 7. >> ibm numbers are out. >> let me bring you up to speed on ibm. we were looking for 305 on the bottom line. ibm clocks in at three bucks. a miss on the bottom line. for the top line, we got $23.41. that's interesting. on the top line, i was talking to analysts today. analysts were saying the revenue could come in light. they were talking about an fx headwind. we were here with other software players. so you're looking for a miss on the topline. what is surprising is the bottom line. we were looking at the $3.05, ibm comes in at three bucks. i'll look through the release and get back to you with more headlines. >> they couldn't squeeze out any
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cost savings to improve the bottom line, despite the top line? >> i would like to see, for example, what the foreign exchange effect is. there may be a good reason why that happened. ibm is extraordinarily good at managing expenses, and in a normal season, they would do all right there. so the fact that they seem to have missed a little harder on the topline, and maybe made it more difficult to manage the bottom line. we'll have see some numbers more closely to figure out what this is about. >> stock bumping along the bottom here, almost down 4% right here. go ahead, david. >> the element for microsoft, obviously, at ibm, you had strong indications coming out of oracle that software was going to be week, as far as enterprise was concerned. the bigger concern here, looking for ibm, is they're in the midst of a mainframe product cycle with a new product having come out in the second half of last year. so to the extent that we're not necessarily seeing an uptake there may argue that you're seeing defensive spending positions being taken by enterprise customers. it is not upgrades as fast as they would be otherwise. >> what about josh's point about currency play on this?
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if the dollar continues to strengthen here, that's not going to be boding well for a company like ibm? >> i mean, ibm as a manufacturer has a global footprint. they can manage their way around a foreign exchange impact. it's not as if they're made in america or a usa export-driven story. >> did i hear google? >> i haven't heard any google numbers yesterday, but the stock market is acting like they're out. it's got that feel to it. we'll get it to you as soon as we have those numbers. you're just joining us. microsoft missed on the top line by a fraction, but beat on the bottom line by 4 cents. ibm missed on the bottom line by five cents and it also was light on the top line there. roger kay, do you like ibm? >> yeah, i think ibm is a real solid company and a real solid stock. >> yes, google numbers are in. >> this is pretty unusual for
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them. >> who's got them. jon fortt, you got google? >> i do have google. it looks like revenues are just about in line at $13.97 billion versus $14.09 expected. eps is a beat at $11.58 versus $10.66 expected. google web revenue, that's their own ad revenue there, at $8.64 billion, right in line with expectations. network revenue at $3.26 billion. maybe a little light of expectations. next, i will be looking for motorola mobile revenues. those look like they're at about $1.02 billion. that is short of a lot of expectations. people were looking for at least $1.3, i believe. >> we're always waiting for cost per click, as well, right? that's the big famous one? >> yep, looking for that as well. >> david garrity, what do you think of these numbers from
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google? >> we have a trifecta here. all three companies have basically missed their revenue numbers. they might have thought of coming in line, but they're all basically light. google, they need to look at what they can do -- >> cost per click. >> what have you got, jon? go ahead, jon. >> guys, cost per click, average cost per click down about 4% over a year ago. paid clicks up about 20%. so one analyst that i was looking at estimated cost per click would be about flat, maybe even up 1%, but paid clicks at 19%. so it looks like paid clicks, that's just aggregate paid click voy nicely, but cost per click, still slipping a bit. this is about in line with a lot of the expectations i have seen, though, as far as how that balances out. >> the margins -- >> then it sounds like it's the costs of motorola that got reduced, which basically gives us the performance for eps. it's nothing really to do with
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their search business, it's how they've managed this acquired hardware business, which people still have questions, why they bought it in the first place. >> what do you think of this, roger? >> well, you know, motorola ends up being kind of a laboratory for google, a line to develop hardware and work with hardware partners. but i think as a viable hardware company on its own, it's probably pretty much finished. so i would like to see google cycle that out sooner rather than later and take the goodness from it and pass it on to the hardware partner that google worked with elsewhere, like samsung. >> so basically light across all three of these major technology companies. what does that tell you about the broader market here and the broader economy? >> that's got to be really worrisome. when you're four years into an economic recovery and the biggest and best companies in the country cannot manage significant revenue growth, it tells you just how weak the underlying pace is. and from a broader perspective, it does make me worried that the big rally we had in the first quarter was somewhat not fundamentallpp see the broader
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economic numbers start to turn around. i want to see good signs in next week's gdp number, that there's momentum in the second quarter. most of all, i would love to see payrolls for april come in somewhere close where the market thinks, which is 150,000. right now, the kind of stuff i'm seeing from claims, from the weekly data, where fr what the stock markets are telling me, i think we need to be prepared for more disappointments on the macro economy side for the next few weeks. >> heather hughes, do you like technology? obviously an important part of our economy right now. >> yes, so, bill, i can't comment specifically on the technology sector, but greg brings up a good point. what is the number one goal of companies and organizations? it's all about value creation. how is value created? by profits, increase in profits, simple accounting formula, again. we know revenue minus cost. so in order to really increase debt and spending, we need to increase income and wages through productivity. so over the long run, once the costs are cut to the bottom of the barrel, we need to get back to growing not only topline
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growth and researvenue, but tha will be done through productivity. that's what the tech sector will focus on going forward, is increasing revenue, not just cutting costs. >> outside the trifecta, we're showing chipotle mexican and they had a big beat. they were expecting $2.13, they got $2.40. that's a lot of fast food, rob morgan. do you like that kind of a company right now? >> well, in that space, bill, our favorite name is starbucks. and we've got a hold on chipotle, but, hey, that's a good sign for the space. i want to go back to a point you mentioned before, about the dollar strengthening a bit. and earlier this year, we went to an overweight on the small cap space for that reason. and i think that's one of the reasons that affected the three big cap tech names we talked about earlier. >> it did help, that's for sure. >> hey, bill? >> yes. >> david garrity. i want to say one thing here. in looking at these three tech names, if we're going to have a pullback here, it's a great
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opportunity for people to buy quality. ibm is a good name to focus on here. and let's remember one thing here, folks, bull markets climb walls of worry. and everything we're seeing right here is deflationary. it's not going to get the fed back in, so buy stocks. >> to quote pink floyd, it's another brick in the wall, that's for sure. jon fortt, something else here? >> something to note here with google's numbers that might be important going forward. noticing that the effective tax rate that google's reporting is actually 8%. that compares with 18%, both last quarter and in the same quarter a year ago. so you've got to wonder how much that low tax rate affected their profitability and eps in that quarter. >> indeed. all right, thank you, all. an important earnings report period just now and wouldn't you know, it's the fast food company that is the only one that beat on the top line, of all three. and it's up 7.5% right now. thank you. coming up, just three days of the tax deadline comes news
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of a b involving current and former irsit uil you hea wh they did, michelle. >> oh, i'll be shocked. also, we're going to speak exclusively to bb&t ceo about his company's earnings and his bank's trouble with stress tests. >> that and much more coming up on the "closing bell." you are watching cnbc, first in business worldwide. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s.
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a busy day in boston in the aftermath of monday's marathon bombings. fbi briefings expected in about 40 minutes. of course, president obama spent nearly four hours there today, as partf interface service that they had, michelle. >> scott cohn is in boston. he has the latest from there, scott. >> michelle, we are going to finally get an official briefing from law enforcement, as bill said, that will come roughly around the top of the hour. and the plan is that it will be all law enforcement. the previous briefings have included the governor and the mayor. this is now sort of getting down to business, and it is widely anticipated that we will probably see some pictures of people of interest, that they captured on video at the time of the explosions on monday afternoon. that's part of the whole process
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of healing this city, healing our city was the theme of the remembrances today in boston, culminating in an hour and 15-minute long memorial service, interfaith service, at the cathedral of the holy cross. president obama speaking and delivering a message of renewal. >> this time next year, on the third monday in april, the world will return to this great american city, to run harder than ever and to cheer even louder, for the 118th boston r marathon. >> reporter: the president is now back in washington, and in washington on capitol hill, a couple of top law enforcement officials testifying about the budget for national security and homeland security. u.s. attorney general eric holder and homeland security secretary janet napolitano also
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talked about this investigation and urged everyone to be patient. >> the investigation is proceeding apace, and it just, you know, this is not an "ncis" episode. sometimes you have to take time to properly put the chain together to identify the perpetrators. >> but everyone is clearly impatient, clearly, especially after the news blackout, essentially, of the last couple of days, with a lot of anonymous or anonymously sourced information, flowing into the news vacuum. we will get more official information on the record from law enforcement officials led by the fbi, at the top of the hour, cnbc will bring it to you live. michelle, bill? >> yep, just 40 minutes away, scott. thank you. all right, on the heels of the terror out of boston and the terrifying and deadly explosion in texas. >> yeah, that horrific fire at that fertilizer plant north of waco injured more than 160
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people, left several dead. we'll go live to the scene for the latest developments when we come back. carfirmation.
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only hertz gives you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz. vertex shares are skyrocketing in after-hours trading. >> we're watching vertex pharmaceuticals, which is skyrocketed. announced data from a phase 2 study which showed significant
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improvements in lung function among adults with cystic fibrosis. this company just added about $5 billion in market cap in the after-hours. they're up about 50% year-to-date. that means vertex is up about 90%. guys, backo you. >> wow. >> josh, thanks. >> the federal reserve is quietly encouraging banks to pick up the base on boosting how much money they, themselves have in the bank, their reserves. >> exactly. cnbc's senior editor john carney has details on that. >> the first quarter bank earnings show that the banks are continue to pile up capital. if you look at the amount of the capital the banks had at the end of the quarter versus what they're supposed to have under basel 3, the new global requirements agreed to by all the regulators, the bank are overcapitalized. take a look at this chart. morgan stanley already has a 9.4% tier one common ratio under basel 3. they only needed to get to 8.5%, and they had until 2019 to do it. bank of america has about 1% more than it needs by 2019, and
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citi, it's not quite there yet, but it's at 9.3% against a 9.5% target. when asked why the bank has so much more capital than it's required to, bank of america cfo bruce thompson told reporters that the bank had to get in compliance with the fed's capital review metrics, as well as basel 3. and various fed officials have been saying that they might raise requirements if they deem it necessary. we heard from jamie dimon, the jpmorgan ceo, who reminded investors that the bank had opted to cut share buybacks in half. bank shares are all down today after the last of the big banks reported quarterly earnings. we asked analyst dick bove why this was happening, and he said it's because investors are afraid they're going to have to issue shares to meet the additional capital requirements. we went to the fed to say, are you guys putting -- twisting arms here? the fed declined to comment. back to you, michelle. >> thank you so much, john. and one company all too familiar
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with the fed's requirements, bb&t. the lender got a rejection from the federal reserve on some parts of its capital plan following the last round of stress tests back in march. >> and then today, bb&t stock is under pressure on the heels of its first quarter earnings, as net income took a hit, due to a charge tied to a disputed tax liability, which the bank warned us was coming. joining us right now, we're pleased to welcome in a cnbc exclusive, ceo and chairman kelly king. mr. king, welcome back to you. >> thank you, glad to be with you. >> before we get to the earnings results, let's get to the reaction on john's reports on capital requirements. obviously, debt got to be such a problem before the capital crisis, there was too much debt everywhere in the economy. are we going the opposite direction? are the capital requirements too onerous on banks right now, in juni your view? >> well, i think the prior period, as you discussed, some banks really did have their capital level too low relative to the risk that they had on their balance sheet.
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so there's certainly an appropriate discussion about, you know, what enhanced level of capital for the industry should there be. it's certainly a possibility that, you know, we'll pivot too far. i see the discussion right now is fairly healthy. nothing's been resolved. it's very complex. it's based on what we think domestic domesticicly, and what our international partners think in the basel accord. so as i understand, there is no final resolve. people are voicing their opinions. the general mood seems to be, there certainly needs to be somewhat more capital. i do think maybe to your point, though, if we go too far and require too much capital in the industry, it will be very bad for the economy, because the more capital we have, you know, generally, the less loans we can make, and that will sort of not be good for the economy. >> how about you, sir? were you frustrated when the fed came back to you and said, yeah, we have a lot of capital, but qualitatively, we're not happy with it, and they rejected you and made you redo it? >> well, michelle, yes, i was
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frustrated, of course. because as you probably no, on the quantitative assessment, the distressed tests, we passed with flying colors. we had like the best capital and the lowest loan losses, second best earnings, so we did great on the stress test. and -- >> so what was the problem? >> well, you know, unfortunately, we're not allowed to discuss the basis on which the fed objected and the qualitative side. i wish we could, but we're just not allowed to discuss -- >> well, it appeared to be -- how you characterize certain assets on how risky they were, right? i mean, it's just a level of risk that was being assigned to certain assets in there that the fed took issue with, wasn't it? >> i can't speak to whether or not that was part of the fed's issue or not. but we did disclose early to whatrelating to, we had an adjustment, and you're right. that's a very complex formulas in trying to take your absolute
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level of assets and decide what risk-adjusted levels could be traded against capital. and to be honest with you, it's very complex. we did make an adjustment to our risk-weighted assets based on some very conservative interpretation of regulatory guidance. >> can i ask you -- go ahead, bill. >> in the meantime, you've got to run this ship. how was the first quarter. do you sense things are slowing down. is the demand for loans out there, especially in the regions that you serve, is it picking up or not? >> well, so, what happened was, you know, we had a relatively strong first quarter, and really, as we got into the first quarter, it kind of hit a wall. it was like, loan production, loan requests dropped off the chart. now, it did start picking up as we headed into march. we were a little discouraged as we headed into the souecond quarter. but really, what's going on out there, people were very hesitant
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to make decisions and invest. they were very uncertain about all the uncertainty coming out of washington. and we could have all the economic analysis we could have, but until we get more certainty out of washington, businesspeople are not going to invest and if they don't invest, banks don't make loans. >> how do you feel about low interest rates? the fed says, we absolutely need them to keep the economy going, and you need a stronger economy for your business. at the same time, your numbers show that with interest rates so low, it's really hard for you guys to make money in this environment. how do you feel about that? it's a double-edged sword, right? >> yeah, michelle, it is. so we actually make more money when rates are higher, so we'd like to see rates higher, particularly, a positive-sloping yield curve. you know, the fed has a strong view in consensus that rates need to stay low. i'm not generally in that camp. i think the early stages of qe were probably good. i think it's very debatable now whether it's doing any good or not. i personally think the economy
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trying to find its own natural structural, level of stabilization, and it's going to do that at its own pace, with or without qe. a lot of people disagree with that. but i think it's about confidence, not about how much qe we have. >> mr. king, appreciate your time, sir. thanks for joining us today. >> thank you very much. have a good day. >> great to have you on. all right, stunning and frightening. just two terms to describe video that captures the situation that we saw in texas. >> yeah, we're going to go live to the blast scene for the latest developments on this horrible tragedy when we come back in a moment. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company."
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just a devastating explosion at that fertilizer plant in texas last night, has left more than five people dead, more than 160 injured. >> let's go live to chris sodahe for the latest developments. >> reporter: we're actually waiting for the latest briefing. it's expected to happen within the next few minutes, but the big thing today was search and rescue. it got underway. and there's a fear that as those search and rescue operations go on, that death toll is going to rise. right now we have the very vague figure between 5 and 15, with at least a few of those being
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firefighters. but there is a lot to sort through. 75 homes leveled by this blast, and those search teams are being very diligent. they have to be, they have to make sure that those homes are secure before they go in and look for any survivors. but as you would expect, as they look for survivors, they could also be coming across people who have already been deceased, and then that's when that death toll would go higher. so that's something people are holding their breath about. aside from that, the investigation into what happened is starting to get rolling. there's been some looks into the past of this plant, some issues with the permits and an odor violation back in 2006. so as they look for a cause, that's something that will definitely be looked at hard. but everybody else right now, waiting to get back into their homes. unfortunately for them, as much as they want to get back and see what damage was done, probably will have to stay in a shelter or elsewhere until those search re opetions are done,
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because they don't want anybody back in there while that scene is still unsecured. back to you, michelle and bill. >> indeed. nbc's chris sadehgy in texas. a few days after tax day, the irs remains on the hunt for fraud. but in tennessee, they didn't think a fraud investigation would net a group of current and former employees. eamon javers is in washington with details on that. eamon? >> hi, bill. this story is likely one of those that's going to get under the skin of anybody who paid their taxes last week. 24 current and former irs employees have been indicted for fraud. they're accused to have falsely saying that they were employed and getting benefits, allegedly obtaining over $250,000 in benefits. some of them allegedly obtained insurance payments, food stamps, welfare, and housing vouchers. i'm told that these were employees in and around the memphis service center in tennessee. they'rw- and seasonal
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employees, and bill, i talked to the irs about this. they say that they hold their employees to the highest ethical standards and point out that they have over 90,000 employees at the irs. clearly, a group here now under intense scrutiny and we'll have to see how this one plays out. but 24 current and former irs employees indicted now for fraud. >> but did they pay taxes on those benefits that they got? >> that's one thing we'll have to check, michelle. >> thank you, eamon. gold prices falling this week and central banks continue to pump out easy money east and west. how long's it going to last and what are the consequences? >> we'll speak with one of the top executives at the international monetary fund when we come back, so keep it here on cnbc.
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saved like $480 bucks. that's a lot of money. i know, right? wait...you have a car? yeah, an suv. [ male announcer ] switch and you could save $480 bucks with state farm. after being down earlier sharply this week, gold and oil prices are back on the upswing. sharon epperson has the details from the nymex. sharon? >> we saw gold prices get above $1,400 an ounce earlier this morning, but they aren't able to sustain those levels. we are seeing a slight uptick, some say it's because of physical demand for gold. in the oil market, we're seeing gains for the first time after six straight days of selling off. and now, keep your eye as well on natural gas. that has been the tremendous gainer in the session. and its gains largely after we got that report from the energy department, showing the increase in supply was less than analysts had expected and less than the
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five-year average. colder temperatures coming to the central part of the country, also contributing to that rise in natural gas. back to you. >> thank you very much, sharon. what does the recent sell-off in commodities say about the state of economies here and abroad? >> joining us now from washington, it's a cnbc exclusive to talk about that and more. we are pleased to welcome the nymex's second in command, david lipton. good to see you. >> nice to be with you. >> we have central banks around the world that are so aggressive with their monetary policies these days, this race to the bottom. and it seems to be taking a toll on commodity prices in some parts of the world, as well. what do you make of this easy money policy in the part of japan, the united states, or other places? >> i think the easy monetary policy has been in response to the low growth, and in the case of japan, to try and end decades of deflation. i think it's the right policy, and i hope it's helpful. you know, the commodity prices seem to react to every bit of news and, you know, the data last week on the fourth quarter slowdown has had an effect.
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but, you know, we're looking at the bigger picture, which is that right now, there's three-speed growth in the world economy. we want to see full-speed growth in all regions of the economy. and we hope that countries will be coming here to our meetings will agree on policies to try to achieve that. >> speaking of policies and trying to achieve that, when you look at the events of the last few months, what should investors in europe think right now, if you are an uninsured depositor, somewhere in europe, should you be worried about losing money? >> i don't think that people should be presuming that what happened in cyprus is a template for the rest of the banking system. cyprus' situation is so special, the fact that the banking system was so large in comparison with the economy, and that the banks there are different from almost all other european banks, they weren't wholesale-funded banks. they were funded by large depositors. >> so you're being very specific about uninsured depositors. what about senior bond holders
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and junior bond holders? it seem s like one of the messages was, those people should no longer expect to get bailed out like they did in ireland and other places in europe. is that a correct interpretation? >> i think it's right that as europe moves from crisis to normalcy, there's be a process of moving from bailouts to a normal process, where if an institution has problems, it's worked out, as an institution flal problem. and just lake it would be here in the united states with the fdic, but when a bank has a problem, the claim plants on the bank are part of the solution. it doesn't mean they're the whole solution. but i don't think there's going to be an on/off switch where there's a shift in europe from the one approach to the other. but it is a process of normalization, as europe goes from crisis to normalization. it's bound to move from bailouts to institutional solutions. >> and part of the debate on all of that, not only in europe, but in the united states, is do we pursue an austerity plan or one of growth, easier said than
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done, i know. but treasury secretary lew was just in france, trying to encourage the french for one to pursue more growth plans than they are with the austerity plans. i mean, where do you stand on that? what's more appropriate right now, given the current debt levels, the slow growth that we see around the world, and so forth? >> well, many countries really have to choice but to consolidate, because their defini deficits and debts are high. but they do have a choice about the pace of consolidation and of course how they structure their government. in some cases, certain kinds of spending, infrastructure spending, are probably not going to impair your long-run sustainability. so the composition of spending can be more growth friendly. but countries need, also, to consider other prolss and europe needs to consider other policies to be supportive of growth, since consolidation will have to proceed, even if it's proceeding at a slower pace. >> does the imf want countries sellheir gold?
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that might be the impression that people would have got often the events of the last couple of weeks. >> no, we don't have a view on that subject at all. >> even though cyprus, in the memorandum of understanding that's been leaked, it looks like cyprus has been asked to do that. >> i think cyprus may choose what cyprus may choose. look, countries may privatize a range of assets if they need to privatize assets and those can be companies. there's nothing wrong with a country selling its gold, if it wishes to, but it's not an imf policy to suggest that. >> mr. lipton, thank you for joining us. >> my pleasure. good to be with you. >> david lipton of the imf joining us from washington today. >> is it a formula for success or ruin? >> in grave danger, you are. >> disney will reportedly release one new "star wars" movie a year starting in 2015. bill, this is a great idea! >> michelle already has her tickets. that news sparking fierce debate, though, among some "star wars" fans everywhere as to whether one new movie a year is
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too frequent. but it could be a boom to the bottom line. we'll discuss both sides of this touchy issue, obviously, when we come back in a moment. farmers presents: fifteen seconds of smart. so you want to protect your place from burglars? buy a lock. buy a dog. mow the lawn. get a sign. hang curtains. plant something thorny. buy another lock. and, of course, talk to farmers. hi. hi! ♪ we are farmers bum - pa - dum, bum - bum - bum - bum ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us.
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we are moments away from a news conference, the first one from law enforcement officials in about two days there in boston as the investigation into the explosions at the boston marathon on monday continue. and we keep hearing all kinds we keep hearing all kinds of speculation about what we will or will not hear. whether or not we get to see photos of possible suspects from the video that was taken. at any rate, high anticipation from that location there in boston when that news conference gets underway at the top of the hour, and we will take you there live for the latest. >> especially because yesterday's was canceled, we had a blackout in terms of information from official spokesmen for a long time. disney's shares down more than 1% today, and that may be the dark side at work. one day after the media giant announced it would turn out a new star wars movie every year starting in 2015. disney's rebooting, of course, that franchise after it bought lucas films last year.
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>> is this overkill? does disney risk diluting the brand by overexposing "star wars"? let's ask grand florida alliance, which is a "star wars" fan organization. i had no idea. >> how are you not a member, michelle? >> what do you think? >> well, let me preface by i am more excited than probably anybody about the new films. >> except michelle. >> the notion of having more "star wars" after 36, 37 years of, you know, since the beginning of the films is amazing. but i am a little worried that having one new film a year is going to dilute the franchise a little bit. >> i equate this with "james bond." i'm a huge fan, the last few have been terrific, but they don't crank them out every year and the anticipation goes up. are they going to overdo it? do they risk that possibility?
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>> i think you can always risk the possibility of overexposure, but i think this is a very, very savvy move on disney's part. they have successfully turned the "avengers" into this giant, giant franchise where there will be "avenger" sequels, but also individual movies, captain america and iron man and thor later this year. i think what disney wants to do is similar to that cash cow that they've created with marvel. they want a giant driving franchise. and then i'm sure they're going to want bobafit to have a franchise and hans solo. >> chris wyman, are you worried habit diluting the brand? are you worried about quality? when you start churning, maybe they're not so good, right? if you have a little more time. >> i don't think disney's going to put anything out that's not of the utmost quality. that's not what i'm worried about. i just feel like it may be too
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much to keep up with. you know, coming out that rapid fire. but i have no doubt that they're going to do justice to the franchise itself. i just hope that it's done in a way that's, you know, caters to the fans that have been there since the beginning. >> who are those fans now? are we still talking about the people around in the '70s when these first started coming out? >> absolutely. >> is there a generation that anticipates this as much as their parents may anticipate this. what do you think? >> the original fans are still around, absolutely. but a whole new era of fans that have grown up with the prequels starting in 1999. >> how good were those. >> and the entire international audience. that's what you need to be worrying about. and not only are you going to have the original "star wars" fans and now their kids, you're going to have entire booming box offices across countries overseas. >> yeah, bill, people like me in their 20s ve "star wars."
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there's a whole new generation. >> did you like the last three movies? >> some of them weren't as good as others. >> oh, yeah, to say the least. >> i was so thrilled when they come out because they have a connection. it's like a soap opera over many years. you know these people's lives. >> the tie-ins which disney is so good at for the ancillary products and things, that's a gold mine right there. >> that's where the money is. the money is absolutely in the merchandising for a franchise like this. the reality is disney has acquired so much in the past decade. they spent $4 billion on marvel, another $4 billion on lucas films. they're looking to make a lot of money to make up for those investments. and the merchandising that comes with lucas film and with star wars is gigantic. >> thank you very much. i'm waiting for dan craig to get back in an austin martin. >> chris, where can i sign up? i'm going to log on right now. see you later.
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all right. 30 seconds on the clock. we have a panel here to tell you what you need to keep an eye on tomorrow. will we see a turn around in the market? jimmy lee from strategic wealth associates joins us. jimmy, you're up first. 30 seconds on the clock, what are you watching? >> well, i think it's back to fundamentals and earnings. i think the majority of the s&p 500 companies can beat expectations. part of this, though, managing expectations as many companies have gotten lower already. i'm also watching commodity prices with gold taking a big hit this week. but if oil prices can stay down, that means good for prices at the pump and good for consumers. and i'm still watching housing. we have a new residential sales report coming out next week. hopeful for a good report, but a little concerned based on the permitting data that came out this week. >> wow, you're right on the money there. okay. anthem, 30 seconds, what are you watching for tomorrow? >> i'll be watching for u.s. mint sales figures, which yesterday posted a single day record.
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as well as general electric's earnings per share as a bell weather for economic health. lowered analyst estimates of 35 cents, increased market intervention by the fed to keep interest rates low and avoid price deflation. given that gold and silver prices perform best when real interest grades are negative, any signs pointing toward the interest rate policy is very bullish for physical gold and bouillon prices. >> thank you so much for joining us, giving us a heads up on what you're watching. bill? >> we are watching for the news conference in boston. any moment the law enforcement officials there will hold the first press briefing in about two days. hopefully they've made some good progress on the marathon explosions there. we also will keep an eye on these stocks and reported earnings tonight. we had the big three from technology, microsoft, google, and ibm, we'll see how they're trading in the afterhours. they are mostly higher.
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chipotle kcked it out of the park. revenue and bottom line were very, very strong, michelle. >> gain of 5% there on the afterhours. ibm lower by 3 1/2. thanks so much for watching. that does it for the "closing bell." >> "fast money" starting right now and they have the news conference from boston, as well. welcome to "fast money," we begin with breaking news, an fbi briefing on the boston marathon investigation is expected to begin at any moment. when it happens, we'll bring that to you live. as we are awaiting that press conference. let's check in with scott cohen in boston for more on what we know about the situation. >> reporter: as you can see from the live picture in the briefing room, melissa, they have set up some easels that are covered right now. it was expected some of the pictures would be shown, the